Talen Energy stock surged more than 20% on Friday. The rally follows a long-term power purchase agreement with Amazon Web Services (AWS). This contract provides the firm with stable, long-term cash flows.
Talen recently finalized the acquisition of three natural gas power plants. The move increases the company's capacity in the tightening PJM power market.
Goldman Sachs initiated coverage on the stock with a Buy rating. Analysts highlighted Talen’s strategic position to serve rising data center demand.
The company also filed a shelf registration for a common stock offering. This move indicates plans to finance future growth initiatives.